Why is Bayer So Cheap?

The company can take a ten billion dollar hit.

Andrew Willis 16 July, 2021 | 2:54AM
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Andrew Willis: Bayer with its strong and wide portfolio of chemical products has been around for a while, but it's easy to forget about that when you have an investment that's been accused of causing cancer.

Glyphosate concerns related to the Roundup brand that came with the Monsanto acquisition seem to have overshadowed the company's cures. Sector Director Damien Conover says Bayer's diverse drug and crop science portfolio should drive long term steady growth despite an expensive legal settlement.

Investors should remember that this wide moat company is still great and making life changing drugs with complex manufacturing processes and patents that deter competitors. It makes the meds we need and with the help of the Monsanto deal, it'll make more of the food we need.

For Morningstar I'm Andrew Willis.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Bayer AG29.10 USD1.56
Bayer AG ADR7.29 USD1.11Rating

About Author

Andrew Willis

Andrew Willis  is Senior Editor at Morningstar Canada. He previously produced content for Fidelity Investments and finance industry events for Euromoney Institutional Investor and has written in the past for Thomson Reuters and CNN. Follow him on Twitter @Andrew_M_Willis.

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